For many young adults in the United States, buying a home is a major life goal. However, those getting into the homeowner’s game are now realizing that it’s not all that it’s cracked up to be.
Sixty-three percent of millennials have stated that they have regrets about purchasing a home, according to a survey by Bankrate.com.
Compare that to the percentage of the general population with the same thoughts—44 percent of all homeowners regardless of age—and there seems to be a major disconnect between generations, and the expectations and finances required to securely own a home.
Hidden fees like inspections and closing costs aren’t being factored into the buying process by young adults, as 25 percent of millennials said this was their main source of regret. The average cost of maintaining a home through repairs and other expenses is $16,000 annually, according to a Porch.com analysis last year, so millennials need to think twice when determining if homeownership is fiscally advisable.
Real estate agents working with prospective young adult buyers would be advised to provide them with more education and guidance when it comes to taking into account the actual costs associated with buying a home.
